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We present two examples of loss of the predictable representation property for semi-martingales by enlargement of the reference filtration. First of all we show that the predictable representation property for a square-integrable…

Probability · Mathematics 2016-01-12 Antonella Calzolari , Barbara Torti

We work in the setting of the progressive enlargement $\mathbb G$ of a reference filtration $\mathbb F$ through the observation of a random time $\tau$. We study an integral representation property for some classes of $\mathbb…

Probability · Mathematics 2018-08-14 Anna Aksamit , Monique Jeanblanc , Marek Rutkowski

Consider $\mathbb{G}$ the progressive enlargement of a filtration $\mathbb{F}$ with a random time $\tau$. Assuming that, in $\mathbb{F}$, the martingale representation property holds, we examine conditions under which the martingale…

Probability · Mathematics 2015-05-18 M. Jeanblanc , S. Song

We deal with various alternative decompositions of F-martingales with respect to the filtration G which represents the enlargement of a filtration F by a progressive flow of observations of a random time that either belongs to the class of…

Probability · Mathematics 2013-07-25 Libo Li , Marek Rutkowski

In this paper we obtain a martingale representation theorem in the progressive enlargement $\mathbb{G}$ by a random time $\tau$ of the filtration $\mathbb{F}^L$ generated by a L\'evy process $L$. The assumptions on the random time are that…

Probability · Mathematics 2020-07-29 Paolo Di Tella , Hans-Jürgen Engelbert

In this paper we show that the weak representation property of a semimartingale $X$ with respect to a filtration $\mathbb{F}$ is preserved in the progressive enlargement $\mathbb{G}$ by a random time $\tau$ avoiding $\mathbb{F}$-stopping…

Probability · Mathematics 2019-03-25 Paolo Di Tella

A general diffusion semimartingale is a one-dimensional path-continuous semimartingale that is also a regular strong Markov process. We say that a continuous semimartingale has the representation property if all local martingales w.r.t. its…

Probability · Mathematics 2024-09-30 David Criens , Mikhail Urusov

We study the predictable representation property in the progressive enlargement F^\tau of a reference filtration F by a random time \tau. Our approach is based on the decomposition of any random time into two parts, one overlapping…

Probability · Mathematics 2024-06-21 Antonella Calzolari , Barbara Torti

We consider a complete probability space $(\Omega,\mathcal{F},\mathbb{P})$, which is endowed with two filtrations, $\mathbb{G}$ and $\mathbb{F}$, assumed to satisfy the usual conditions and such that $\mathbb{F} \subset \mathbb{G}$. On this…

Probability · Mathematics 2019-11-21 Tomasz R. Bielecki , Jacek Jakubowski , Monique Jeanblanc , Mariusz Niewęgłowski

We study the strong predictable representation property in filtrations initially enlarged with a random variable L. We prove that the strong predictable representation property can always be transferred to the enlarged filtration as long as…

Probability · Mathematics 2017-06-29 Claudio Fontana

Let $X$ be a point process and let $\mathbb{X}$ denote the filtration generated by $X$. In this paper we study martingale representation theorems in the filtration $\mathbb{G}$ obtained as an initial and progressive enlargement of the…

Probability · Mathematics 2020-09-09 Paolo Di Tella , Monique Jeanblanc

We consider a filtration $\mathbb{G}$ obtained as enlargement of a filtration $\mathbb{F}$ by a filtration $\mathbb{H}$. We assume that all $\mathbb{F}$-local martingales are represented by a martingale $M$ and all $\mathbb{H}$-local…

Probability · Mathematics 2024-11-25 Antonella Calzolari , Barbara Torti

We consider a market model where there are two levels of information. The public information generated by the financial assets, and a larger flow of information that contains additional knowledge about a random time. This random time can…

Mathematical Finance · Quantitative Finance 2018-05-30 Tahir Choulli , Catherine Daveloose , Michèle Vanmaele

This work is concerned with the theory of initial and progressive enlargements of a reference filtration F with a random time {\tau}. We provide, under an equivalence assumption, slightly stronger than the absolute continuity assumption of…

Probability · Mathematics 2011-11-15 Giorgia Callegaro , Monique Jeanblanc , Behnaz Zargari

Given a reference filtration $\mathbb{F}$, we develop in this work a generic method for computing the semimartingale decomposition of $\mathbb{F}$-martingales in some specific enlargements of $\mathbb{F}$. This method is then applied to the…

Probability · Mathematics 2014-02-14 Monique Jeanblanc , Libo Li , Shiqi Song

We develop the mathematics of a filtration shrinkage model that has recently been considered in the credit risk modeling literature. Given a finite collection of points $x_1<...<x_N$ in $\mathbb{R}$, the region indicator function $R(x)$…

Probability · Mathematics 2009-09-29 A. Deniz Sezer

Our financial setting consists of a market model with two flows of information. The smallest flow F is the "public" flow of information which is available to all agents, while the larger flow G has additional information about the…

Mathematical Finance · Quantitative Finance 2022-11-16 Tahir Choulli , Ferdoos Alharbi

In this paper, we assume that the filtration $\bb F$ is generated by a $d$-dimensional Brownian motion $W=(W_1,\cdots,W_d)'$ as well as an integer-valued random measure $\mu(du,dy)$. The random variable $\ttau$ is the default time and $L$…

Probability · Mathematics 2014-05-14 Kun Tian , Dewen Xiong , Zhongxing Ye

We show that all local martingales with respect to the initially enlarged natural filtration of a vector of multivariate point processes can be weakly represented up to the minimum among the explosion times of the components. We also prove…

Probability · Mathematics 2021-07-12 Antonella Calzolari , Barbara Torti

This paper considers the nonlinear theory of G-martingales as introduced by Peng. A martingale representation theorem for this theory is proved by using the techniques and the results established in an accompanying paper for the second…

Probability · Mathematics 2013-06-18 H. M. Soner , N. Touzi , J. Zhang
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